On the 26th of April 2017 the Trump administration announced its tax plan. They consider it to be the largest corporate tax cut in history.
Regarding businesses, the following is proposed:
- Reducing the corporate rate to 15 percent
- Making small businesses (presumably pass-through entities and sole proprietorships) eligible for the 15 percent rate
- Repatriating foreign earnings at a one-time rate; negotiations are ongoing with Congress over what that rate would be, and no specific rate was discussed in the announcement
- Changing the U.S. tax system from a worldwide system to a territorial system
A complete overview of the proposed changes and their consequences has been provided by Baker Tilly US. Please keep a close eye on the provisions that are most important to your company.
If you have any questions do not hesitate to contact your Baker Tilly Berk adviser.